Nvidia(US:NVDA) Sou Hu Cai Jing·2025-11-22 05:24Core Viewpoint - Michael Burry warns of potential fraud in the AI investment landscape involving major tech companies, highlighting concerns over "suspicious revenue recognition" practices [3][11]. Group 1: Financial Performance - NVIDIA reported impressive Q3 earnings with revenue of $57.01 billion and earnings per share of $1.30, surpassing market expectations [4]. - Following the earnings announcement, NVIDIA's stock surged by 5%, adding approximately $130 billion to its market capitalization [5]. - However, within 54 hours, NVIDIA's stock experienced a dramatic fluctuation of over $1 trillion in market value, indicating investor uncertainty [6]. Group 2: Financial Data Concerns - A significant red flag was raised with NVIDIA's accounts receivable reaching $33.4 billion, leading to a Days Sales Outstanding (DSO) of 53.3 days, a 15.9% deterioration compared to historical averages [7]. - NVIDIA's inventory surged to $19.8 billion, a 32% increase from the previous quarter, contradicting claims of "crazy" demand [7][8]. Group 3: Insider Selling - Notable investors, including Michael Burry, have begun to exit their positions in NVIDIA, with Burry's firm disclosing substantial put options against the stock [10]. - SoftBank's Masayoshi Son completely liquidated an $5.8 billion position in NVIDIA, shifting focus to "application layer" AI investments [10]. - Peter Thiel's hedge fund also closed its entire NVIDIA position, drawing parallels between the current tech environment and the dot-com bubble [10]. Group 4: Circular Financing Allegations - Burry's concerns extend to a "circular financing" scheme among major tech firms, where companies like NVIDIA and xAI engage in transactions that may inflate revenue figures [11][12]. - This scheme involves NVIDIA providing capital to xAI, which in turn uses that capital to purchase NVIDIA products, creating a loop that artificially boosts NVIDIA's revenue [12][13]. Group 5: Geopolitical Risks - The U.S. Department of Justice has charged four individuals with illegally exporting advanced NVIDIA AI chips to China, highlighting the geopolitical tensions surrounding AI technology [15][16]. - The black market demand for NVIDIA chips underscores the intense global competition for AI computing power [17]. Group 6: Historical Comparisons - Current concerns about NVIDIA's financial practices bear resemblance to past accounting fraud cases, such as Enron and Lucent Technologies, which involved misleading revenue recognition [18]. - The structure of NVIDIA's dealings with xAI mirrors past fraudulent practices, raising questions about the sustainability of its reported revenues [18][19]. - As of November 21, NVIDIA's stock traded at $180.32, maintaining a market cap of $4.39 trillion, but underlying debates about the AI industry's integrity persist [19][20].